Don't Leave Home Without It

COVID-19 has devastated many travel plans over the past year. The travel industry is still in a very fluid state with restrictions and protocols changing frequently, making it hard to know when and where you can safely travel. One positive outcome is that more travelers are becoming aware of the importance of travel protection insurance. Travel protection should be included in any trip planning budget the same way you include tipping your server when you plan on dining out.

As you pay your trip expenses, you are making an investment in your travel; and travel protection covers that investment if something should disrupt it.  Policies can cover any, or all, aspects of your travel costs including transportation, accommodations, tours and excursions. They may also include medical expenses, lost, stolen or damaged personal items, baggage loss or delay, 24-hour assistance, and concierge benefits. You should review any policy you are considering to be familiar with the amount and dates of coverage, the covered reasons for cancellation, and claim instructions. It is important to know if a policy offers a “cancel any time” or a “cancel for any reason” clause.

Travel protection coverage is available through travel suppliers, third-party insurance companies and even credit card benefits. Policies offered by travel suppliers cover only the travel purchased from them. If you purchase a cruise from the cruise line, flights from the airline and a pre-cruise hotel using loyalty points, a cruise line policy will not cover your other expenses. Supplier insurance frequently issue refunds in the form of future travel vouchers which require use within a specific period of time or their value expires. Credit card companies cover only costs paid with their card and fall short on medical coverage. Your health insurance may cover medical emergencies but you need to check for out-of-area coverage.   It is generally advisable to purchase third-party insurance which, in addition to consolidating coverage, may also cover supplier default and offer 24-hour travel assistance and concierge services. Also third-party insurance will refund your money and often cover the fees to reinstate air miles or hotel points. Travel advisors can offer third-party travel protection even on trips they have not booked.

While travel protection policies can be purchased right up to the day before travel, it is best to purchase it at time of booking.  Pre-existing condition coverage is only offered on policies purchased when travel is booked or shortly thereafter. If you wait until you think you will need to cancel, you have already ‘missed the boat’. You cannot purchase coverage for your Caribbean cruise once a hurricane has formed but you will be covered if you purchased it when you booked your cruise. Almost all policies exclude coverage for epidemics and pandemics, although in the last year we have seen companies amend their policies to cover some issues related to COVID-19.

Borrowing a phrase from American Express, I caution all my clients ‘don’t leave home without it.’